Domestic car price war leader was strong onslaught cabbage price will buy it

Posted on 5/24/2016 9:42:08 AM

Once the leader of independent brands, Great Wall Motor has been a strong onslaught price war in 2015. Although revenue and profit gives nice responses, but had people falling profitability continued to grow Sexy concerns. The continuous drop official and high-end products H8 defeat, but also to rely on this SUV brand products up cast a shadow.
Last week, Great Wall Motor, 2015 shareholders' meeting, Great Wall Motor chairman Wei Jianjun challenge facing investors reaffirm the strategy SUV one leg again, and insisted focused SUV direction, improve product quality and cost-effective.
Great Wall Motor recently disclosed 2015 results, the company sales reached 846,000, an increase of 11% compared with 2014, the total revenue of 76.03 billion yuan, an increase of 21.46%, attributable to shareholders of listed companies net profit of 8.06 billion yuan. In this behind the gorgeous data is a decline in product gross margin. From the first three quarters of last year, sales declined in the fourth quarter sold a substantial increase in purchase tax policy stimulus, but gross margin decreased from 22.9% four quarters of 26.6% in the first quarter.
Statistics show that in 2015 total sales of Great Wall cars, SUV reached 693,000, accounting for 82%, up 11% over 2014. As earnings growth momentum, Great Wall Motor to hold the position in the market last year after another officer was down. From the price effect, the Great Wall Motor stopped the decline in the growth momentum. In April this year, Great Wall Motor vehicle sales of 79,607, which sold 43,946 H6 to achieve a sales growth of 42.83 percent, but the entire Great Wall Motors April sales up only a slight increase of 1.72%.
The industry generally worry, though official Haval H6 rely down to hold the position in the market, but failed to break through the Great Wall of overall sales, which enhance product quality and brand, will fall into a passive situation. In fact, as the flagship product of Harvard and Harvard H9 H8 delay in open up the situation, has given investors the Great Wall of marketing question. Last year, the overall auto market after China entered the micro-growth phase, from late June, the Great Wall had started to stimulate sales by means of official drop, keeping its own market share. Among them, Harvard H8 after two price cuts, all models price has fallen below $ 200,000, the price starting from 188,800 yuan.
People somewhat surprised that twice the price has not brought a corresponding increase in sales. Official data show that, H8 and H9 sales were 1064 and 1054, has remained at a monthly average of one thousand and down, and had set monthly sales compared to 5000 still has a great distance. "Great Wall Motor no way ad operations apply to Harvard H8? After all, the price of more than 20 million SUV can not be compared with the previous 10 million vehicles, the need to support the brand image." This undoubtedly represents some investors on the Great Wall questioned the marketing strategy.
It is worth noting that, according to the Great Wall of internal sources, listed less than a month Hover H7 sold 1290, with an initial monthly sales target from the 5000's is still some distance, but let Wei army has been ascribed to the Great Wall brand He is full of confidence.
In accordance with the marketing plan this year, Great Wall Motor will achieve the goal of 950,000. January to April this year, Great Wall Motor has sold 31.3 million units, achieved its goal of progress. However, with the Harvard brand ascribed repeated setbacks, a market analysts believe that, for now, although the Great Wall in the current SUV market is still hard to find opponents, but as more and more newcomers, the Great Wall in the SUV market dominance on will also be challenged, and the decline of its profitability, but also for the sustainable development of leaving a hidden danger.

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